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Collecting ZIP Codes Could Haunt You

Law360 (March 10, 2011, 1:44 PM EST) -- In early February 2011, the California Supreme Court opened the door to a new wave of consumer protection class actions. No one saw it coming. A bevy of class actions has since commenced.

On Feb. 10, 2011, the unanimous court held that any business that asks for a customer’s ZIP code in completing a credit card transaction, and records that information, has violated the Song-Beverly Credit Card Act of 1971.

The act carries automatic penalties as high as $250 for the first violation and $1,000 for...
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